After it became known that the US Congress approved a new package of financial assistance to the country's economy, experts began to predict the decline in the dollar. Observer RUSSIAPOST Alexander Zapolskis believes that the dollar, on the contrary, will grow, but soon this "bubble" will burst.
He reminded that the collapse of the dollar pyramid was predicted by many analysts in the time of the USSR, but since then the dollar is only growing. According to Zapolskis, what happens to American currency is contrary to all financial laws.
"Only in the framework of five quantitative soften programs, from December 2008 to October 2014, the Federal Reserve drew 4.66 trillion" candy "," the observer reminded.Given that the nominal US GDP in 2008 was 14.7 trillion, and as a result of 2014 reached 17.3 trillion, no enormous inflation was observed. If the jump and was in 2011, then everything was normal in 2015.
The money supply in the United States continues to grow: for ten months, 3.68 trillion was formed from somewhere, notified the expert. Sources of money, he said, was a quantitative softening of the Fed, as well as emergency assistance to the victims of a pandemic. Her authorities have already spent 900 billion, and until March 2021 another 300 billion is planned. Another reason why the money has become more, these are "bad debts", redeemed on the Balance of the Fed, which are also monetized.
"Only this year, almost 4 trillion dollars increased in the American economy for the year, although earlier increment by 2.5 trillion occurred at least 3 years. The nine-seater pulse of the money supply in the United States reached 14%, "said Zapolskis.The browser surprises why such a volume financial infusion does not lead to the overflow of the "pool". He suggested that there is no hyperinflation in the US, because to the real economy, the "Dry" money, ultimately, do not reach.
As an example, he led the NASDAQ Exchange Capitalization schedule: October 2019 - 16 trillion, November 2020 - on average about 21 trillion. On the New York Stock Exchange, a similar situation: July 2008 - about 15 trillion, January 2019 - almost 23 trillion.
He noted that neither Apple nor Amazon, nor Google made in the current year "no epochial breakthroughs.
"Fed inflates a bubble that does not burst. And it makes it on this. While the rest swallow dust in attempts at least catch up with the leader "Higher," - I am sure Zapolskis.It can not continue such a state of affairs forever, he warned. According to him, there are two existence limits for the federal reserve. The first is the amount of the revenue part of the US budget. Despite that it is the largest in the world, tax collection is lagging behind the growth rate of public debt. In other words, debts overtake the budget.
In addition, debts must be serviced. Now the United States spends more than 4% of the expenditure part of the budget.
According to the analyst, the Americans exhausted their resource in 8-10 years, as they will no longer be able to pull debt obligations.
"The Fed is trying through the reduction of borrowing by lowering the accounting rate, now equal to 0.25. Of course, you can draw anything, only now, it is the profitability of Triazurez, it is the main source of money to receive money by pension funds and most local US budgets, "says Zapolskis.To continue to pay for debts, the rate should be not lower than 4.75-5.0%, it is sure.
To preserve already contracted payments, the current pensioners of the funds are forced to begin to gradually publish the fixed capital, which, just enough for about 7-8 years.